Mazda Motor Co, the Japanese affiliate of Ford Motor Co, said on Friday it will have flat sales in China this year as a result of the suspended local production of a compact model and increasingly intense competition.

Robert Graziano, Mazda vice-president, told a press conference in Beijing that the firm's 2006 sales in China will grow slightly to 135,000 vehicles from last year's 134,000.

In the first 10 months of this year, Mazda sold 101,000 vehicles in China, down 7 per cent year-on-year.

The tumble was in sharp contrast to an overall rise of more 30 per cent in China's car sales.

Ozaki Kiyoshi, Mazda's board member in charge of its China operations, blamed the situation on a seven-month standstill in the Mazda3 compact sedan's local production and increased market competition.

Mazda, one-third owned by Ford, started to produce the Mazda3 at its joint venture with the US auto group and China's Chang'an Motor in Southwest China's Chongqing in February. However, the compact sedan was marketed by the Japanese carmaker's other joint venture with China's First Automotive Works Corp (FAW).

As a result of this separation of manufacturing and marketing, which violates China's industry policy, Mazda3 production was halted in April.

Kiyoshi said production was resumed earlier this month and the Mazda3 will go on sale again, without revealing how and when it will be marketed.

Despite this year's weak performance, Mazda executives stressed that the company will keep its target of selling 300,000 vehicles in China by 2010 through its collaboration with Ford, Chang'an and FAW.

According to a plan issued at the beginning of last year, Mazda intends to introduce eight new locally produced or imported models to China by 2008.

Source: China Daily